AM Best Upgrades Issuer Credit Rating of Group Ark Insurance Limited

LONDON--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Group Ark Insurance Limited (GAIL) (Bermuda). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR is stable. GAIL is a wholly owned subsidiary of Ark Insurance Holdings Limited (Ark), the non-operating holding company of the Ark group. Concurrently, AM Best has upgraded the Long-Term Issue Credit Ratings (Long-Term IRs) on GAIL’s outstanding rated instruments. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. See below for a detailed listing of Long-Term IR ratings.

The ratings reflect Ark’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). In addition, the ratings reflect GAIL’s strategic importance to Ark as the group’s Bermuda-based (re)insurance vehicle, which provides reinsurance to Ark’s corporate member at Lloyd’s and writes third-party (re)insurance business.

The upgrade of the Long-Term ICR reflects Ark’s track record of profitability at a level commensurate with a strong operating performance assessment, supported by effective cross-cycle underwriting management.

Ark’s balance sheet strength is underpinned by its consolidated risk-adjusted capitalisation being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Ark’s risk-adjusted capitalisation is projected to remain at this level, supported by good internal capital generation. The balance sheet strength assessment also considers Ark’s prudent reserving, low risk investment portfolio, good financial flexibility and strong liquidity profile. A partially offsetting factor is the company’s material exposure to catastrophe risk, which AM Best expects to be managed through the use of reinsurance and robust exposure management.

The strong operating performance assessment considers the group’s good overall performance, illustrated by a consolidated five-year (2020-2024) return-on-equity and net combined ratio of 24.0% and 88.0% (as calculated by AM Best), respectively. AM Best expects Ark to maintain robust technical return metrics over the underwriting cycle, notwithstanding the potential volatility associated with its catastrophe-exposed property business. Ark’s recent underwriting performance has proven resilient to major losses. For 2024 and the first nine months of 2025, Ark reported a consolidated net combined ratio of 87.7% (as calculated by AM Best) and 87.9% (as reported by the company), respectively, driven by a prudent underwriting strategy and prior-year reserve releases. Furthermore, earnings have been supported by the group’s solid investment income, which has benefitted from the higher interest rates in recent years.

Ark’s neutral business profile assessment is reflective of its diversified underwriting portfolio across its Lloyd’s and Bermuda (re)insurance platforms. The group reported gross written premium of USD 2.2 billion in 2024 and USD 2.3 billion for the first nine months of 2025. Ark benefits from experienced and stable management and underwriting teams that have been strengthened appropriately as its business has grown.

The following Long-Term IRs have been upgraded with the outlooks revised to stable from positive:

Group Ark Insurance Limited—
— to “a-” (Good) from “bbb+” (Good) on EUR 39.1 million floating rate subordinated notes, due 2041
— to “a-” (Good) from “bbb+” (Good) on USD 47.0 million floating rate subordinated notes, due 2041
— to “a-” (Good) from “bbb+” (Good) on USD 70.0 million floating rate subordinated notes, due 2041

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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